BTO prices will not rise with resale market: Khaw

This Feb 11, 2012 file photo shows ongoing construction at a HDB BTO project in Sengkang. National Development Minister Khaw Boon Wan on Thursday made clear that he has de-linked the prices of new flats sold by HDB from the resale flat market. -- ST PHOTO : ALPHONSUS CHERN

By Rachel Chang

National Development Minister Khaw Boon Wan today made clear that he has de-linked the prices of new flats sold by HDB from the resale flat market.

He has done this ever since he took over the housing portfolio in 2011 to ensure that Build-to-Order (BTO) flats remain affordable despite the rising resale market, he said.

Speaking to reporters at the HDB hub on Tuesday morning, he noted that BTO prices across HDB's new launches in the past 18 months have been stable, although prices of resale flats have been steadily climbing.

This means that the subsidy that the Government is giving for the construction and sale of new flats has been growing.

"I will continue this policy for as long as property remains hot and until the property market stabilises," Mr Khaw promised.

He emphasised the new pricing policy on the sidelines of the launch of MND's Land Use plan this morning. It details how land will be optimised to house a population projection of 6.9 million, and where the 700,000 new homes by 2030 will be built.

Singaporeans need not worry that there will not be enough public housing or that it will be unaffordable, he said.

Especially for first-timers, he said: "I guarantee that there will be a flat for you, and you will be able to afford it."